Should you be worried about the US elections as a bitcoin investor?

Well, the seemingly endless U.S. election campaign is finally coming to an end and now the question every investor is asking is, “How will the presidential election outcome impact the markets?”.

And more specifically as a Bitcoin investor, should you be worried about how the result of the election might influence the price of Bitcoin?

The first thing to remember is that whatever impact the election has in the short term, there’s unlikely to be much of an impact on the Crypto market in the medium to long term.

Why? Well, the fundamentals of Bitcoin are unchanged.

The enormous potential of Cryptocurrencies just simply isn’t going away.

And the growing public awareness and institutional investment trends will be not be altered no matter if it’s Biden or Trump sitting in the Oval Office.

It’s also worth remembering that markets price in all available information, so large scale investors are already prepared for several possible outcomes.

Unlike 2016, when many were caught off-guard by Trump’s victory, he is now a known commodity so people know what to expect from a Trump presidency for the next four years.

Similarly, Biden’s policies and political track record are well understood, so a Biden victory is unlikely to cause any fundamental shifts in market sentiment.

Some I believe the market will react slightly more favourably to a Trump victory than a Biden victory.

And there’s still good reason to believe a correlation between the Stock market and Crypto markets is likely to remain in the short term.

But the fact is both candidates are strong supporters of the financial markets and will make decisions that support them during the uncertain economic climate caused by COVID.

The greatest unknown is far more likely to be caused by an uncertain outcome if the race is extremely close and the ultimate result takes weeks to be determined as large numbers of postal votes are counted or if the winner has to be decided by the courts.

So there is a chance that the Stock market or Crypto markets may fall due to a delayed election result as markets traditionally do not like uncertainty.

There could also be added volatility if accusations of voter fraud break out.

And if you remember back in March of this year, a temporary fall in the Bitcoin price was seemingly correlated to the COVID stock market crash.

But due to the recent extreme bullishness seen in the Bitcoin price, Bitcoin may just keep on grinding upwards before testing new all-time highs in just a matter of months.

We are already seeing a strong downturn in the amount of BTC available on exchanges, which shows us the liquidity is drying up.

So with declining supply and increasing demand, this can only lead to upwards price pressure.

At the same time, more and more institutions are declaring they’re holding very large positions in BTC as a hedge against the inflationary pressures of large scale money printing by Central banks around the world.

So everything we’ve been waiting for and expecting to see over the last 3 years since the last supercycle is lining up as expected. And regardless of any election jitters, now is not the time to be caught out of position.

This all points towards the greatest market impacts being likely to occur if the race is close and the winner cannot be determined for several weeks.

But even so, this will probably just lead to a short period of increased price volatility that is unrelated to the fundamentals of Bitcoin or the Cryptocurrency space.